First time buyer incentive

Mortgage and Lending with First Centennial Mortgage NMLS # 132763


Many have said that first-time home buyer reluctance to buy is keeping our economy in check.  To help stimulate this market Illinois has advertised several incentive programs including Welcome Home Heroes and Welcome Home Illinois.  These incentives are significantly more valuable to the homebuyer and certainly more costly than the 2009 Obama incentive. It would seem that if stimulating first time buyers is a priority then eliminating obstructions should be a goal as well. 


My question is “Why are 3rd party originators (mortgage brokers) prohibited from promoting and offering these programs?”  Is it “risk”?  It seems that HUD, FNMA & Freddie have found a way to mitigate risk on mortgage originations.  Is it higher overhead costs?  Certainly, lenders can create an overlay to cover any additional costs.  Is it something else?  I hope it is not just a more effective LOBBY.  Whatever the justification, it seems that the system is failing.  


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